Can You Sell an Unfinished House? Yes, and Here’s How!

Selling a house that’s still a work in progress might seem overwhelming, but don’t worry—it’s entirely possible and often profitable when done right.

The key to success lies in knowing how to prepare, market, and price your unfinished house effectively.

Whether you’ve run out of funds mid-project or inherited a home that needs more work than you can handle, this guide will walk you through everything you need to know to secure a smooth, hassle-free sale.

If you’d rather skip the hassle of preparation and repairs altogether, Fantastic Homes—your trusted real estate agent in Chicago—makes it simple.

We buy houses in any condition for cash and can close in as little as seven days. No renovations, no fees, no stress. You’ll receive a fair, all-cash offer based on the highest off-market price and avoid all the expenses that come with traditional home selling.

Contact us today for your free, no-obligation cash offer!

A Complete Guide to Understanding Unfinished Homes

What Is Considered an Unfinished House?

An unfinished house is one that isn’t move-in ready.

It may lack critical elements like drywall, finished floors, functional plumbing, or even permanent electrical systems. These homes vary in their level of completion—some may just need cosmetic updates, while others require full-scale construction work.

Some buyers might view them as blank canvases, but the perception depends on how you present the property.

Common Reasons Homes Are Left Unfinished

There are countless reasons why homeowners list their house unfinished.

Financial issues, such as budget overruns or the rising cost of materials, are common culprits. Other situations—like sudden relocations, family emergencies, or inheriting a half-completed renovation—also lead homeowners to opt for selling “as-is” instead of continuing costly projects.

Understanding and sharing your reason can build buyer trust.

Types of Unfinished Homes on the Market

Not all unfinished houses are created equal. Some are partially renovated homes that ran out of funding, while others are foreclosures left incomplete by previous owners.

Here are some of the common types of unfinished houses on the market.

• Shell Homes: Houses with completed exteriors (walls, roof, windows, and doors) but unfinished interiors (plumbing, electrical, drywall, flooring).
• Framed Houses: Houses with structural framing complete but lacking walls, roofing, insulation, and interior finishes.
• Dry-In Homes: Homes that are weatherproofed with roofing, windows, and doors installed, but with incomplete interior work.
• Partially Renovated Homes: Older houses where renovation work has started but hasn’t been finished, leaving parts of the home in disrepair or incomplete.
• Fixer-Uppers: Structurally sound homes that need extensive repairs or updates, often including unfinished rooms or damaged systems.
• Basement-In Homes: Homes where only the foundation or basement has been constructed, with no above-ground structure yet built.
• Custom Homes in Progress: Homes where construction was halted before completion, often mid-way through custom features or design.
• Abandoned New Builds: Recently started construction projects abandoned by developers or builders before completion.

Knowing where your home falls on this spectrum helps you set realistic expectations for its sale.

Why Homeowners Choose to Sell Unfinished Houses

Financial Difficulties and Cost Overruns

Unplanned costs—like electrical rewiring, plumbing issues, or unexpected structural repairs—can derail a renovation budget.

When expenses balloon beyond what was originally expected, many homeowners opt to sell the unfinished house rather than take on additional financial strain.

Life Changes or Relocation

Job relocations, family changes, or health-related issues can require homeowners to leave mid-project.

Selling in these situations helps free up cash quickly and eliminates the stress of managing a home from afar.

If you’re facing a similar situation and need a fast cash sale, Fantastic Homes is here to make it simple. Contact us today for a fair, all-cash offer and take the stress out of selling!

Inherited Properties May Require Too Much Work

Inherited properties often come with outdated layouts or half-finished repairs requiring so much work to fix, that it becomes more money and effort than it’s worth for the owners. When the cost of renovations outweighs the potential return on investment, selling the house unfinished is often the best choice for those who don’t want to take on extensive home improvement projects.

Legal and Permitting Requirements When Selling an Unfinished Home

The Importance of Building Permits and Code Compliance

Building codes and permits matter—a lot.

If your home has unpermitted work, this can cause major red flags for buyers and complicate the sale process.

Ensuring that all work is documented and compliant with local regulations can make a huge difference in buyer confidence.

How to Obtain Permit Records in the Chicagoland Area

In Chicagoland, you can request permit records from your local municipal office. In some cases, a Freedom of Information Act (FOIA) request may be needed.

The Freedom of Information Act (FOIA) is a law that grants the public the right to access government records, including building permits and inspection reports. If certain records aren’t readily available online or at municipal offices, a FOIA request allows you to formally request this information.

Having these records on hand allows you to provide transparency and build trust with buyers.

Disclosures You Must Make to Buyers

Sellers are legally required to disclose any known defects or unfinished projects.

If you know of any structural issues, incomplete permits, or failed inspections, transparency is key. This avoids legal troubles and ensures buyers understand exactly what they’re getting.

How to Evaluate Your Unfinished Property Fairly

Challenges in Appraising Unfinished Homes

Appraising an unfinished house can be tricky since comparable properties (comps) are often fully completed homes.

It’s essential to work with an experienced appraiser who understands how to value the structure, land, and potential future improvements fairly.

Factors That Influence Property Value

Key factors influencing your home’s property value include its location, size, structural integrity, and the progress of the renovation.

Highlight any completed upgrades, such as a new roof or reinforced foundation, to offset the unfinished areas.

The Importance of Highlighting Location and Potential

A prime location can significantly boost the appeal of an unfinished house.

Chicagoland neighborhoods with excellent schools, parks, and amenities can make buyers more willing to take on renovation work. Showcase the possibilities by sharing renovation ideas and providing renderings.

How to Prepare Your Unfinished Home for Sale

Clean and Secure the Property

First impressions matter, even for unfinished houses.

Clean up construction debris, mow the lawn, and ensure that any exposed wiring or hazardous areas are safely secured. A tidy presentation makes a huge difference when showing the home.

However, when you sell directly to Fantastic Homes, you can skip the hassle of cleaning and repairs—we’ll take care of clearing out the property for you. It’s that easy and convenient!

Organize Documentation of Completed Work

Gather records of completed work, such as permits, inspection reports, and contractor invoices. Having a detailed history of progress helps buyers feel confident in the work that has already been done.

Address Minor Repairs to Improve Curb Appeal

Curb appeal refers to the attractiveness of a home when viewed from the street. It’s the first impression potential buyers or passersby get based on the exterior appearance of the home and surrounding property.

Simple fixes, like patching small holes, painting exterior trim, or fixing a loose handrail, can go a long way.

These minor upgrades make the home appear more complete and well-maintained.

Marketing Your Unfinished Home Effectively

Targeting Real Estate Investors and Developers

Many investors actively seek unfinished houses to flip or rent out.

Tailor your marketing to appeal to this group by emphasizing the home’s potential for profit and customization.

Showcasing Customization Potential with Visual Aids

Visual aids, like renderings, mood boards, or digital blueprints, can help buyers see the finished vision. Highlight design possibilities to spark their imagination and demonstrate the home’s potential value.

Using Professional Photography to Attract Buyers

Even an unfinished house can look appealing with the right photography.

Capture well-lit, decluttered spaces and highlight the best aspects, such as large windows, lot size, or a desirable location.

How to Price Your Unfinished Home for a Competitive Sale

Setting an “As-Is” Price That Reflects the Home’s Current Condition

Set a realistic “as-is” price based on the home’s current state, nearby comps, and renovation needs. Overpricing will drive away serious buyers, while competitive pricing attracts offers.

You can read more about how a home’s condition affects prices here.

If you’re curious about what your unfinished house is worth, our team at Fantastic Homes will assess its highest off-market value and provide you with a fair, all-cash offer!

Factoring in the Estimated Completion Costs for Buyers

Consider how much a buyer will need to spend to finish the home. Providing estimates for completion costs helps buyers understand what they’re getting into and see the true value.

Leave Room for Negotiation

Buyers of unfinished houses often expect some flexibility.

Be open to reasonable negotiations, but ensure you have a bottom-line number to avoid underselling your property.

Financing Challenges Buyers May Face and How to Address Them

Common Loan Types for Buyers of Unfinished Homes

Buyers may need renovation-specific loans, such as the FHA 203(k)—a government-backed loan designed to help buyers finance both the home purchase and renovation expenses.

There are two types of FHA 203(k) Loans:

• Limited 203(k): For minor repairs and non-structural updates, such as new flooring, painting, or appliance upgrades.
• Standard 203(k): For major repairs or structural changes, like building an addition or addressing significant plumbing or electrical work.

Key Points:

• Both loans require that the property be at least one year old.
• The renovation work must begin within 30 days of closing and be completed within six months.

Explaining these options upfront can help ease buyer concerns and make them feel more confident about financing an unfinished house.

Alternatively, working with cash buyers, like Fantastic Homes, eliminates the need for loans altogether, making the sale quicker and more straightforward.

Why Cash Buyers Are Ideal for Faster Sales

A cash buyer eliminates the need for lender approval and avoids delays. This is why cash home-buying services like Fantastic Homes are often the best route for homeowners looking for a quick sale.

Helping Buyers Understand Construction and Renovation Loans

Some buyers may be unfamiliar with the loan approval process for buying an unfinished house. Providing guidance or pointing them to experts can make the process smoother and faster.

Why Choose Fantastic Homes for a Hassle-Free Sale

When you work with Fantastic Homes, you skip the hassle of staging, repairs, and months of uncertainty.

We make fair, all-cash offers for unfinished houses and cover all closing costs, so you can sell your home in as little as seven days—completely hassle-free and without any added expenses.

FAQ About Selling an Unfinished House

Can you sell an unfinished house?

Yes, you can! While some buyers may be hesitant, others—especially real estate investors and cash buyers—actively seek out homes that need work.

What’s the best way to sell a house unfinished?

Set a competitive price, be transparent about what work is incomplete, and market the property to the right buyers, such as cash buyers or investors.

Can you close on an unfinished house quickly?

Yes, especially when working with a cash buyer. Cash buyers typically skip the mortgage approval process and inspections that can delay traditional sales. Companies like Fantastic Homes can close in as little as seven days!

Is buying an unfinished house a good idea for investors?

Buying an unfinished house can be a smart investment if the location is desirable and the renovation costs align with the expected resale value.

Real estate investors often look for unfinished homes they can renovate and sell for a profit or turn into rental properties.

Can you get a mortgage on an unfinished house?

It depends on the extent of the unfinished work.

Some lenders may offer renovation-specific loans, like the FHA 203(k) loan, which covers both the purchase price and renovation expenses.

However, homes that are missing critical elements like plumbing or electrical systems may not qualify for a traditional mortgage.

In such cases, cash buyers are often the fastest and simplest option.

Ready to Sell Your Unfinished Home? Contact Fantastic Homes Today!

If you’re ready to sell your unfinished house, we are ready to make you an all-cash offer!

Contact us today to get started—your solution to a stress-free home sale is just a call away!

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